MGHB02H3 Chapter 15: Chapter_15
Document Summary
Intellectual or emotion inputs transformation outputs: components of the external environment. I t is useful to divide the external environment into a manageable number of components. The general economy affects organizations as they profit from an upturn or suffer from a downturn: when a downturn occurs, competition for remaining customers increase. Some org thrive under a poor economy, including welfare offices and law firms that deal heavily in bankruptcies: with high unemployment (poor economy), some org might upgrade the quality fo their staff since they will have more selection. All organizations have potential customers for their products and services. Successful firms are highly sensitive to customer relations: organizations must be sensitive to changes in customer demands and reactions. Suppliers: organizations are dependent on the environment for supplies that include labour, raw materials, equipment, and component parts. Shortages can cause severe difficulties, ie no workers.
